❓ Why should you consider a subscription business instead of a traditional transaction business ❓
Ehhh… that’s a good question. I will try with storytelling. Why don’t you join me. Take a seat and enjoy.
You are at the disco.
The bass is pounding, a bit like Billy Jean. 🎼🎸
It is Saturday night. After a few Margheritas (or a handful). You are owning the dancefloor, as if you were John Travolta in Saturday Night Fever 🕺. You lock eyes at the sweet blond girl sitting in the bar.
She is smiling.
You are smiling back.
You dance – you ARE John Travolta..... 😎
You end up spending an amazing night together ❤
Sunday morning. The bass is still high… no wait, that is the neighbor, emptying the trash cans.
You got a bad breath. She wakes. You look at one another. A bit embarrassed and slightly awkward.
”Well, I got football with the boys” you mumbles while assembling the pieces of clothing on the floor. She has an appointment for brunch with the girls - so it’s fine.
”So, ehm.. keep in touch? ” you mumble.
”Yeah yeah… sure”, she answers (not very convincing)
A week later you are standing there again. Bass pounding. You're John Travolta and the dark-haired girl whom you've never met before is smiling at you from the bar. You need to dance with her ...
If only life was that simple, right?
That is how many businesses have it today. They are constantly fighting for the attention on the dancefloor … however, there is a long wait between the smiling girls sitting at the bar.
If only there were a model, where you didn’t have to get out on the dancefloor each week to try and make yourself attractive for the sweet girls at the bar.
It is called a relationship 👩❤️👨
A relationship where you develop a deep relation to your partner. You get to know her on a deeper level. You work on the relationship – you use your time and resources on something more meaningful than Margheritas, condoms and aspirin.
And you know that even if you have a bad breath, the hair is not on point and the neighbor is emptying the trash cans, then the change of getting “breakfast in bed” is way higher than previously.
Many traditional businesses have come to that realization. They have discovered that by developing a closer relationship with their customers, you can:
✔ use less money on marketing / advertising,
✔ predict future revenue better (as you do not start from 0,- each month) and
✔ you get more loyal customers that uses more money on your product/services, if you treat them properly.
This is the experience you get when you go from a transaction-based business to a business based on a subscription. ❤
That is why you need to consider a subscription business!
Jakob is former Head of Marketing at Upodi. Jacob knows a lot about a lot of things. Including (not excluding) fundraising, subscription based business models, IPA's and IPO's plantbased foods and barefoot running.
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